1. Blockchain Technology and Its
Application in Libraries
Nabi Hasan, Ph.D., PDF
Librarian & Head, Central Library
Indian Institute of Technology Delhi
http://web.iitd.ac.in/~hasan hasan@library.iitd.ac.in
(Ex. University Librarian – Aligarh Muslim University)
Coordinator – National Resource Centre in Library and Information Sciences (ARPIT-MOOCs), Govt. of India

2. Outline
➢Background
➢Blockchain: Conceptual Understanding
➢What is Blockchain Technology?
➢The Three Pillars of Blockchain Technology
➢Why is Blockchain Popular?
➢What is Distributed Ledger?
➢Blockchain for Enterprise Application Developer
➢Possible Areas of Implimention of Blockchain
Technology in Libraries

3. Background
➢ The theory behind Bitcoin was first explained in a 2008 white paper
written under the pseudonym “Satoshi Nakamoto.”
➢ In fact, Blockchain 1.0 is moved to Blockchain 3.0 since 2008:
“blockchain 1.0 refers to digital currency, Blockchain 2.0 to digital
finance, and Blockchain 3.0 to digital society”.
➢ Blockchain is a list of records called blocks that store data publicly and
in chronological order. The information is encrypted using cryptography
to ensure that the privacy of the user is not compromised and data
cannot be altered.
➢ Information on a Blockchain network is not controlled by a centralized
authority, unlike modern financial institutions.
➢ If you are a participant in the Blockchain network, you will have the
same copy of the ledger, which all other participants have. Even if one
node or data on one particular participant computer gets corrupted, the
other participants will be alerted immediately, and they can rectify it as
soon as possible.

4. Blockchain: Conceptual Understanding
➢ A blockchain is a decentralized database and peer to peer network
that stores a registry of transactions secured with cryptography.
➢ Blockchain is the ledger, or record keeping, side of the transaction
and subsequent transactions.
➢ In simpler terms, Blockchain technology uses a distributed
database (multiple devices not connected to a common processor)
that organizes data into records (blocks) that have cryptographic
validation, are timestamped, and are linked to previous records so
that they can only be changed by those who own the encryption
keys to write the files.
➢ Blockchain records the date, time, participants and any other
contractual or legal pieces of a Bitcoin transaction.
➢ Blockchain is a key part of the infrastructure underlying Bitcoin
and other cryptocurrencies.

5. Features of Blockchain
➢We have a public distributed ledger, which works
using a hashing encryption.
➢Every block has a hash value, which is the digital
signature of the block.
➢All the transactions are approved and verified on
the Blockchain network using a proof-of-work
consensus algorithm.
➢The Blockchain network utilizes the resources of the
miners, who are there to validate the transactions
for rewards.

6. What is Blockchain Technology?
➢Blockchain technology is a structure that stores transactional
records, also known as the block, of the public in several
databases, known as the “chain,” in a network connected
through peer-to-peer nodes. Typically, this storage is referred
to as a ‘digital ledger.’
➢Every transaction in this ledger is authorized by the digital
signature of the owner, which authenticates the transaction
and safeguards it from tampering. Hence, the information the
digital ledger contains is highly secured.
➢In simpler words, the digital ledger is like a Google
spreadsheet shared among numerous computers in a network,
in which, the transactional records are stored based on actual
purchases. The fascinating angle is that anybody can see the
data, but they can’t corrupt it.

7. The Three Pillars or Main Properties
of Blockchain Technology…
The three main properties of Blockchain Technology
which have helped it gain widespread acclaim are:
➢Decentralization
➢Transparency
➢Immutability

8. The Three Pillars of Blockchain
Technology…
Decentralization: In a decentralized network, if you want to interact with
your friend then you can do so directly without going through a third party.
That was the main ideology behind Bitcoins. You and only you alone are in
charge of your money. You can send your money to anyone you want
without having to go through a bank.

9. The Three Pillars of Blockchain
Technology…
Transparency: One of the most interesting and misunderstood concepts
in blockchain is “transparency.” A person’s identity is hidden via
complex cryptography and represented only by their public address.
The following snapshot of Ethereum transactions depicts as what it
actually shown:

10. The Three Pillars of Blockchain
Technology
Immutability: Immutability, in the context of the blockchain, means
that once something has been entered into the blockchain, it cannot
be tampered with. The reason why the blockchain gets this property
is that of the cryptographic hash function. In simple terms, hashing
means taking an input string of any length and giving out an output of
a fixed length.

11. What is a Block?
With Blockchain technology, each page in a ledger of transactions forms
a block. The block has an impact on the next block or page through
cryptographic hashing. In other words, when a block is completed, it
creates a unique secure code, which ties into the next page or block,
creating a chain of blocks, or blockchain.

12. Why is Blockchain Popular?
Blockchain is an emerging technology with many advantages in an
increasingly digital world:
➢ Highly Secure: Blockchain technology uses a digital signature feature
to conduct fraud-free transactions making it impossible to corrupt or
change the data of an individual by the other users without a specific
digital signature.
➢ Decentralized System: Conventionally, you need the approval of
regulatory authorities like a government or bank for transactions;
however, with Blockchain, transactions are done with the mutual
consensus of users resulting in smoother, safer, and faster
transactions.
➢ Automation Capability: Blockchain technology is programmable and
can generate systematic actions, events, and payments automatically
when the criteria of the trigger are met.

13. What is a Cryptocurrency?
➢ A cryptocurrency is a form of digital currency that can be used to
verify the transfer of assets, control the addition of new units, and
secure financial transactions using cryptography.
➢ One of cryptocurrencies’ most important advantages over normal
(fiat) currencies is that they are not controlled by any central
authority. Without a central point of failure or a “vault,” the funds
cannot be hacked or stolen.
➢ The shared and distributed nature of cryptocurrencies keeps
everyone on the same page.
➢ Therefore, the transparency and distributed nature of Blockchain
technology is what makes cryptocurrencies (at least those that use
blockchain) secure.
➢ Some of the more popular cryptocurrencies are: Bitcoin, Litecoin,
Ethereum, Stellar, Ripple, etc.

14. What is Distributed Ledger?...
A distributed ledger is a database that exists across several
locations or among multiple participants.
➢Centralized Ledger: All parties reconcile their local databases
with a centralized electronic ledger that is maintained and
controlled by a trusted central party.
Centralized Ledger

15. What is Distributed Ledger?...
➢Distributed Ledger (Permissionless): Each node in a P2P network owns a full
and up-to-date copy of the entire ledger. Every proposed local addition to the
ledger by a network participant is communicated across the network to all
nodes. Nodes collectively validate the change through an algorithmic
consensus mechanism. After validation is accepted, the new addition is
added to all respective ledgers to ensure data consistency across the entire
network.
Distributed Ledger (Permissionless)

16. What is Distributed Ledger?
➢Distributed Ledger (Permissioned): In a permissioned system, nodes need
permission from a central entity to access the network and make changes to
the ledger. Access controls can include identity verification
Distributed Ledger (Permissioned)

17. Features of Distributed Ledger
➢The distributed feature of Distributed Ledger Technology (DLT)
allows self-interested participants in a P2P network to collectively
record verified data in a shared ledger without relying on a trusted
central party.
➢The removal of the central party can increase speed and remove
costs and inefficiencies associated with maintaining the ledger and
subsequent reconciliations.
➢It can also enhance security because there is no longer a single
point of attack in the entire network.
➢Permissioned systems can fit more easily into existing legal &
regulatory frameworks and institutional arrangements. However,
to some degree, permissioned DLs remove key benefits of DLT’s
most critical innovation, such as the lack of need for a central
party.

18. How Does Blockchain-Based DLT Work?

19. Open/Permissionless Vs.
Permissioned Distributed Ledgers

20. How Does Blockchain Work?...
Blockchain consists of three important concepts: Blocks, Nodes and
Miners.
Blocks
Every chain consists of multiple blocks and each block has three
basic elements:
• The data in the block.
• A 32-bit whole number called a NONCE. The nonce is randomly
generated when a block is created, which then generates a block
header hash.
• The hash is a 256-bit number wedded to the nonce. It must start
with a huge number of zeroes (i.e., be extremely small).
When the first block of a chain is created, a nonce generates the
cryptographic hash. The data in the block is considered signed
and forever tied to the nonce and hash unless it is mined.

21. How Does Blockchain Work?...
Miners
➢ Miners create new blocks on the chain through a process called mining.
➢ In a blockchain, every block has its own unique nonce and hash, but
also references the hash of the previous block in the chain.
➢ Miners use special software to solve the incredibly complex math
problem of finding a nonce that generates an accepted hash. Because
the nonce is only 32 bits and the hash is 256, there are roughly four
billion possible nonce-hash combinations that must be mined before
the right one is found.
➢ Making a change to any block earlier in the chain requires re-mining
not just the block with the change, but all of the blocks that come
after. This is why it's extremely difficult to manipulate blockchain
technology.
➢ When a block is successfully mined, the change is accepted by all of the
nodes on the network and the miner is rewarded financially.

22. How Does Blockchain Work?
Nodes
➢One of the most important concepts in blockchain technology is
decentralization. No one computer or organization can own the chain.
Instead, it is a distributed ledger via the nodes connected to the chain.
➢Nodes can be any kind of electronic device that maintains copies of the
blockchain and keeps the network functioning.
➢Every node has its own copy of the blockchain and the network must
algorithmically approve any newly mined block for the chain to be
updated, trusted and verified.
➢Each participant is given a unique alphanumeric identification number
that shows their transactions.
➢Combining public information with a system of checks-and-balances
helps the blockchain maintain integrity and creates trust among users.
➢Essentially, blockchains can be thought of as the scaleability of trust via
technology.

23. Public Vs. Private Blockchains

24. What is Blockchain good for?

25. Blockchain Issues
Legal Issues
➢Ownership of a decentralized ledger
➢Privacy
Security Issues
➢Blockchain can be hacked
Standardization Issues
➢Process Management
➢Data Retention
➢Provenance of Information Stored in the Blockchain
➢Authenticity of Information

26. Blockchain for Enterprise Application
Developer

27. The Librarians can help Blockchain
Education reach to All. Here, the Role of the
Librarian is Important, like
Librarian’s
Role
➢In Need to understand blockchain
➢Use of Blockchain in various applications
➢To Provide Blockchain education to users

28. Areas of Implementation of Blockchain
Technology in Libraries
PLAGIARISM
PAYMENTS
USER TO USER LOAN
ILL
SCHOLARLY PUBLISHING
DRM
Blockchain

29. Blockchain for Libraries
Blockchain technology is opening new opportunities. Apart from its
application in financial services, blockchain-based systems may be
implemented in other fields related to Libraries, like.
Digital preservation and tracking
Community-based collections to share objects, tools, and services
Blockchain-based currencies for international financial transactions (IFLA)
Inter Library Loan and Voucher System
Library verification of credentials (information literacy)
Library card
Archives/special collections where provenance and authenticity are
essential
Corporate library records keeping
Organizational data management
Intellectual property for R&D, etc.

30. User to User Loan

31. Library to User Loan

32. Scholarly Publishing
➢Basically, the Blockchain is about storing information in a distributed,
tamper-resistant setting. This fits well with the work, librarians have always
been doing, that is, gathering, preserving, and sharing authoritative
information.
➢The Blockchain can help librarians achieve that work, especially in the world
of scientific publications.
➢One potential use for the blockchain could be to create timestamped,
verifiable versions of journal articles.
➢Irving and Holden successfully tested the use of the Bitcoin blockchain “as a
low cost, independently verifiable method that could be widely and readily
used to audit and confirm the reliability of scientific studies.”
➢They did this by creating a cryptographic hash of the plaintext of a trial
protocol document and using that hash to create a new private Bitcoin key.
➢This creates a time-stamped record in the blockchain, which other
researchers can quickly verify in the future. If the document is changed, the
hash of the new document will not match the one stored in the blockchain.

33. Digital Rights Management
➢Like as DRM Tool.
➢Digital resources are inherently reproducible, and this creates
issues for libraries and publishers. Publishers have imposed
draconian, often unworkable DRM tools on libraries and
consumers in order to prevent copying of their materials.
Because the blockchain creates a unique, verifiable record that
can be accessed by anyone, it could be tied to digital materials
and used as a method to show “proveable scarcity” of that
resource.
➢This would allow digital materials to be uniquely identified,
controlled, and transferred.
➢Publishers could be reassured that no copies were being made,
but whether prices would decrease accordingly is debatable.

34. Summing Up
➢Blockchain Technology is increasingly being adopted in libraries in various
ways like for creating an enhanced metadata system, protecting digital
first sale right, peer to peer sharing and so on.
➢The technology is the best fit for academia and to get potential pace in
libraries, apart from those already explained.
➢It can be used to secure user records in libraries, document library
acquisitions, and improve collections maintenance.
➢Applications for special collections could allow for identification and
discovery of unique holdings.
➢The scholarly record is another use case that lends itself to blockchain by
allowing researchers to record and timestamp their ideas and disseminate
knowledge.
➢Libraries have a major opportunity to use blockchain technology to
advance privacy for users, increase collaboration, and transform the way
they work with each other and their communities.
➢San Jose University, Toronto Reference Library, Suffolk Cooperative
Library System, etc. are already exploring this Technology and we can see
a great scope for other libraries to follow

35. References
➢ https://www.simplilearn.com/tutorials/blockchain-tutorial/what-is-
ethereum?source=sl_frs_nav_playlist_video_clicked
➢ www.ala.org/tools/future/trends/blockchain
➢ https://www.computerworld.com/article/3191077/what-is-blockchain-the-complete-guide.html
➢ https://blockgeeks.com/guides/what-is-blockchain-technology/
➢ Enis, M. (2017), “SJSU-Led team explores blockchain in libraries", Library Journal,(blogpost),
available at: www.libraryjournal.com/?detailStory=sjsu-led-team-explores-blockchain-in-
libraries,
➢ Frederick, Donna Ellen. (2019), “Blockchain, Libraries and the Data Deluge.” Library Hi Tech
News, vol. 36, no. 10, 2019, pp. 1–7., doi:10.1108/lhtn-09-2019-0059.
➢ Coghill, J.G. (2018), “Blockchain and its implications for libraries", Journal of Electronic
Resources in Medical Libraries. 15 No. 2, pp. 66-70, available at:
HTTPs://doi.org/10.1080/15424065.2018.1483218
➢ Oyelude, Adetoun A. “What's Trending in Blockchain Technology and Its Potential Uses in
Libraries.” Library Hi Tech News, vol. 36, no. 9, 2019, pp. 17–18, doi:10.1108/lhtn-09-2019-
0062.
➢ Sanjay and Hasan, Nabi. (2020), “Blockchain Technology and its Application in Libraries”, Library
Herald, Vol. 58 No. 4, pp. 118-125.

36. Disclaimer/Acknowledgements
➢The Presentation/Lecture has been prepared
from different resources to help the learners to
understand the topic for academic and research
use.
➢I duly acknowledge the scholars and the
website content providers whose materials has
been used in my presentation/lecture.

37. Thanks for Listening
Questions and Comments may be sen to the Discussion Forum or Email to:
hasan@library.iitd.ac.in
http://web.iitd.ac.in/~hasan